Blue Chip Issue 89

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BLUE CHIP ROUND TABLE SERIES | Offshore investing AF: A lot of South Africans take money overseas largely as a bet against the rand and aren’t too concerned about the performance of the offshore investment itself. Rather, they rely on the rand’s weakness to give them a rand return. Is this a sensible motive? And if you think it is, how do you manage clients around this issue? Greg Strachan (GS): I always try to dissuade my clients from making decisions based on trying to benefit from rand devaluation, because I think it is founded on the wrong principles. In an “offshore or not” decision, a key consideration should be determining what portion of your assets need to be held in the currency where your liability is. I can’t stress enough the importance of matching the location of assets and liabilities and this should be the key driver of your clients’ thinking about a move offshore. There are a couple of misnomers in the media from time to time around what’s permissible, limitations on what an individual can take offshore and so on. Once your client is clear about where their assets should be sitting, then a sensible decision can be made about taking excess capital offshore. And then once this decision is made, I don’t think it makes sense to put too much store on what the current exchange rate is. If the rate is a bit high, one can send it off strategically, say monthly or every two weeks, rather than trying to “call” the rate. To reiterate, it is very important to get the client to understand fundamentally the inherent risks associated with holding offshore assets, and it is really a case of making the client very aware that having funds offshore that are supporting a lifestyle in South Africa is not the most efficient way to hold assets. Having said that, some clients will still decide to take the risks as a premium against political instability in South Africa. AF: When your clients are looking to take money overseas how much do you look at the valuation of the asset on the other side versus the currency? Hannes Viljoen (HV): Our preference is squarely on the valuation of the asset on the other side. I believe if you are trying to move funds offshore just because you believe that the rand is going to weaken you are really doing it for the wrong reasons. It should be about what you believe your offshore asset is going to give you versus what your onshore asset is going to give you. Because the truth is, no-one can know what the future may bring, and how unforeseen events may affect the exchange rate one way or the other. So, we put most of the weight on the expected return rather than on the base of the rand. PRACTICAL MEASURES FOR TIMING THE EXCHANGE RATE TO A CLIENT’S ADVANTAGE AF: The exchange rate looms large in many people’s minds and is a significant factor in when and how much they consider taking offshore. But how important should the exchange rate be in the decision, and more specifically, how important is getting the timing right? Is it worth, for example, getting a tax clearance in place, to be able to move quickly when the time is right? LL: I think it is very important to consider the realities of SARS turnaround times. At present, provided you have your ducks in a row in terms of documentation, etc, that turnaround time is 15 to 21 working days (though they can be shorter). So, if you have a client who is likely to want to move funds soon, it makes sense to have an existing tax clearance certificate in play. There are also other measures available that help with timing for our wealth manager clients, such as rate watch facilities or forward exchange contracts. AF: Do a lot of your clients put a level at which they want to trade the currency and have that in the market, so the system can then just trade automatically? LL: Absolutely. Our rate watch facility works slightly differently though. What happens is there is a realistic target range set, we then monitor the rates via the client’s designated dealer and we monitor the markets. Should that rate alert trigger, we contact the client or the designated person (quite often this is the wealth manager) who then may determine whether to proceed. You can also reset the goalposts depending on what the market movement or market volatility is on local currency. So, again, it is about creating potential hedging strategies on foreign exchange whereas previously clients really haven’t been able to do that and have been at the mercy of whatever the banks’ rate of exchange was. To watch the round table series in full, visit www.bluechipdigital.co.za or scan the QR code. 52 www.bluechipdigital.co.za
FINANCIAL PLANNING | Self development BLUE CHIP So, you’ve been there, seen that and done it all? I thought I had. After almost 30 years in the financial services sector, the final 14 as a CEO of a profitable company, I believed that this was it: I’d reached the pinnacle of a successful life. Besides my professional qualifications and career, I had played sports at a national level, flown planes and had a healthy sense of self. Or so I thought. I honestly believed I’d achieved everything I wanted. The only niggling feeling of failure was related to my personal life and intimate relationships. A chance reading of a post by Dr Roddy Carter promoting his recently published book, Fireside Wisdom: Conversations to Inspire Personal Mastery changed me. Not just because Dr Carter and I were high-school classmates but because something else resonated deeply within me. My parents gifted me the book which I read over the Christmas break. I was riveted. An unsettling realisation became obvious: my mindset was my greatest impediment. I was jeopardising my own life through my thoughts, assumptions and responses. It was difficult to admit that I wasn’t leading the wonderful life I thought I was and that my brain was the obstacle! This book gave me a sense of how my mind “works” – with all the cognitive, emotional and spiritual elements that make for happiness and fulfilment. Using cutting-edge neuroscience, Dr Carter unravels the complex interplay between our thoughts, emotions and personal satisfaction. The path to success and happiness is about making your mind your best friend. A subsequent catch-up call where we reminisced about our school days became the gateway to an insightful three-month odyssey that revolutionised my perspective on life. Dr Carter’s candid admission that he wished he understood this science earlier in life was inspirational: Compassionate Neuroscience outlines all the untapped resources within each one of us. These resources have impacted every part of my life. Yes, I thought I had it all, but I found out how much I was missing. What a pity we don’t learn how to operate our brains much earlier in our lives. After our conversation, Dr Carter kindly couriered me his first book, Body Wealth: Journey to Abundance. During my career, I tailored, set and implemented financial plans achieving anticipated results. Once I familiarised myself with the ideas associated with Compassionate Neuroscience, I was hooked and was keen to participate in the Unstoppable YOU programme. Admittedly, my initial focus was on my failed personal relationships where I felt “stuck”. I enrolled for the 14-week Unstoppable YOU programme, which had me devoting 90 minutes every week to my feelings, fears and a sense of self-awareness. My “people-pleasing” tendencies soon emerged: I tend to think about the well-being and happiness of others at my own expense. I learnt, through the Brain Operating System, to manage my fears, identifying and confronting the justifications I use as excuses. Gradually, I identified the traits enriching my life and those sabotaging it. Time spent reflecting and writing enabled me to plan the life, professional and personal, that I ultimately want. Ironically, I have been doing this for my clients for decades, creating bespoke financial solutions for them while I completely ignored my personal development. It’s easy to let the numbers translate into a “successful” life. Through the Brain Operating System, I discovered what was to become one of my favourite concepts in the programme: the idea of “psychic push-ups”. When we initially confront our fears and negative perceptions, it’s uncomfortable and difficult. Over time, the benefits of “psychic push-ups” become evident – easier to practice and the rewards are priceless. After completing the lessons on Owning the Office of the CEO (read: mastering your brain), Clearing the Filter, Conquering Fear and Driving Belief, I noticed some fundamental shifts in how I handle personal relationships. As time went by, I began to understand and appreciate my assets and strengths, the positive character traits that were serving me well and the triggers which were negatively impacting my life. Admittedly, I needed to delve much deeper into my thoughts, feelings and fears. The simple exercises required by the programme taught me to pause, explore, think, question, challenge and disagree with what I had effectively been doing most of my life to understand the person whom Dr Carter refers to as the authentic you or the “you you”. Reflecting on the past eight months, it’s almost surreal to recall my initial state of mind. In today’s tumultuous world, rife with technological advancements and information overload, the programme stands as a beacon for personal mastery and resilience. To echo the words of Ralph Waldo Emerson, “The only person you are destined to become is the person you decide to be.” It is that simple. Trevor Glassock MBA, CA(SA), CFP®, Head of Sales, Dr Roddy Carter www.bluechipdigital.co.za 53
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BLUE CHIP 0.5 CONTINUOUS PROFESSION
Page 4 and 5: CONTENTS ISSUE 89 NOV/DEC/JAN 2024
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Page 8 and 9: BLUE CHIP FPI UPDATES | CEO message
Page 10 and 11: BLUE CHIP On the money Making waves
Page 12: BLUE CHIP On the money Making waves
Page 15 and 16: RCA-BCJ-23-2 Our tailored platform
Page 17 and 18: BEHAVIOURAL FINANCE | Books BLUE CH
Page 19 and 20: COLUMN BLUE CHIP Consider paying of
Page 21 and 22: FPI | Financial Planner of the Year
Page 24 and 25: BLUE CHIP FPI | Research The power
Page 26 and 27: BLUE CHIP FPI | Research • 84% ag
Page 28 and 29: BLUE CHIP CLIENT ENGAGEMENT | Behav
Page 30 and 31: BLUE CHIP CLIENT ENGAGEMENT | Behav
Page 32: BLUE CHIP CLIENT ENGAGEMENT | Behav
Page 35 and 36: INVESTMENT | Offshore BLUE CHIP The
Page 37 and 38: INVESTMENT | Economy BLUE CHIP 1% o
Page 39 and 40: INVESTMENT | Asset management BLUE
Page 41 and 42: Partner with us, become an FPI Appr
Page 43 and 44: MAKE YOUR MONEY WORK ANYWHERE. At O
Page 45 and 46: INVESTMENT | Economy BLUE CHIP Thin
Page 47 and 48: FINANCIAL PLANNING | DFM BLUE CHIP
Page 49 and 50: Calling ALL Financial Advisors Bran
Page 51 and 52: Help us create a better tomorrow. I
Page 53: ROUND TABLE SERIES | Offshore inves
Page 57 and 58: PRACTICE MANAGEMENT | Technology BL
Page 59 and 60: USE AI FOR EFFORTLESS AGENDAS & MIN
Page 61 and 62: FINANCIAL PLANNING | Technology BLU
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Page 65 and 66: PRACTICE MANAGEMENT | Technology BL
Page 68 and 69: BLUE CHIP PRACTICE MANAGEMENT | Tec
Page 70 and 71: BLUE CHIP CLIENT ENGAGEMENT | Commu
Page 72 and 73: BLUE CHIP FINANCIAL PLANNING | Reti
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Page 77 and 78: FINANCIAL PLANNING | Retirement BLU
Page 79 and 80: PRACTICE MANAGEMENT | Accounting BL
Page 81 and 82: GOALS BASED ASSET MANAGEMENT HEALTH
Page 83 and 84: FINANCIAL PLANNING | Retirement BLU
Page 85 and 86: FINANCIAL PLANNING | Leadership BLU
Page 87 and 88: CLIENT ENGAGEMENT | Behavioural fin
Page 89 and 90: PRACTICE MANAGEMENT | Business deve
Page 91: YOU SHOULD THINK CAREFULLY ABOUT TH
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Blue Chip Issue 89

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